If you plan on staying in your home for longer than 49 months it may be time to refinance. After 49 months you would breakeven (recover the closing costs of $3,500) and save money over your current mortgage situation. Your monthly payment would drop from $537 to $465, putting $72 each month into your own pocket and you could save $25,942 in interest over the life of the loan.A 'traditional' breakeven analysis calculates all costs associated with a refinancing and divides by the monthly payment savings achieved by refinancing. Although the 'traditional' method does a good job evaluating when you might make your money back it ignores one key factor-your new mortgage will probably now have a longer term than your existing one.To overcome this discrepancy, we suggest that you increase your monthly payment on your refinanced loan slightly until the refinanced loan pays off at the same time as the existing mortgage - 'enhanced' refinance. Your monthly payment will be slightly higher than the 'traditional' refinance, but your mortgage will pay off faster and you will reduce your overall interest paid. Below is an analysis of your situation.<table class='pure-table' role='grid'><tr><th></th><th scope="col">Current Mortgage</th><th scope="col">Traditional Refinance</th><th scope="col">Enhanced Refinance</th></tr><tr><td>Term</td><td>360</td><td>360</td><td>360</td></tr><tr><td>Payment</td><td>$537</td><td>$465</td><td>$465</td></tr><tr><td>Breakeven</td><td>N/A</td><td>49 months</td><td>49 months</td></tr><tr><td>Total Interest</td><td>$93,256</td><td>$67,314</td><td>$67,314</td></tr></table><ul><li><a href="home-affordability">How much home can I afford?</a></li><li><a href="refinance-calculator">Should I refinance my mortgage?</a></li><li><a href="mortgage-calculator">Mortgage calculator</a></li><li><a href="hom04">Comparing mortgage terms (i.e. 15, 20, 30 year)</a></li><li><a href="hom05">Should I pay discount points for a lower interest rate?</a></li><li><a href="rent-vs-buy-home">Should I rent or buy a home?</a></li><li><a href="should-i-convert-to-a-bi-weekly-payment-schedule">Should I convert to a bi-weekly payment schedule?</a></li><li><a href="hom08">Compare a 'no-cost' vs. traditional mortgage</a></li><li><a href="hom09">What are the tax savings generated by my mortgage?</a></li><li><a href="fixed-or-adjustable-rate-mortgage">Which is better, fixed or adjustable-rate mortgage?</a></li><li><a href="adjustable-rate-mortgage-calculator">Adjustable rate mortgage calculator</a></li><li><a href="hom12">How do closing costs impact the interest rate?</a></li><li><a href="hom13">Compare an interest-only vs. traditional mortgage</a></li><li><a href="how-much-can-i-borrow-from-my-home-equity-heloc">How much can I borrow from my home equity (HELOC)?</a></li><li><a href="loan-comparison-calculator">Loan Comparison Calculator</a></li></ul> <div id="chart1Container">Chart will load here</div> <script type="text/javascript">  </script>   <span style="padding-bottom:2px;background-color:#eee;border-bottom:1px dotted;border-top:1px dotted;"><span style="color:#81A41E;font-size:100%;font-weight:700;"> <a href="https://forms.insuredstreet.com/MXForms/Forms/HomeFramed?aid=cd14185&afftrack=hom02&affsub=hom" target="_PP_WINDOW">INSTANT HOME OWNERS INSURANCE QUOTES</a></span> <span style="color:#000;font-size:100%;font-weight:normal;">– <a href="https://forms.insuredstreet.com/MXForms/Forms/HomeFramed?aid=cd14185&afftrack=hom02&affsub=hom" target="_PP_WINDOW">Affordable Rates - click here</a></span>  </span>